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Greencoat Renewables planning capital increase
Posted on Thursday, 21 November 2019 14:08
Irish renewable energy investor Greencoat Renewables has unveiled plans to conduct a share issuance programme comprising new stock over the next 12 months.

Under the terms of the transaction, the firm intends to sell up to 350.00 million shares via multiple tranches.

As part of this, the firm will issue around 88.00 million stocks in what it is referring to as an “initial placing”. Those scrips will be purchased for EUR 1.13 each, thereby valuing the initial placing at about EUR 99.44 million.

Under these terms, the 12-month issuance programme can be valued at EUR 395.50 million.

The final size of the initial placing may vary from the figures given and will be disclosed on or around 10th December 2019, with the stock to be admitted to trading on 17th December 2019.

Greencoat said it is carrying out the capital increase in order to give it the financial means required to capitalise on the active Irish secondary market for wind assets, while also putting it in a position to pursue opportunities throughout Europe.

Proceeds of the initial placing, which is being launched today, will be used to refinance the firm’s revolving credit facility and fund acquisitions while maintaining gearing in the target range.

The 12-month issuance programme still requires approval from Greencoat’s shareholders; this will be sought at a general meeting on 16th December. The board has already recommended that investors vote in its favour and has unanimously given it the green light.

Zephyr, the M&A database published by Bureau van Dijk, shows that the largest capital increase to have been announced worldwide in 2019 to date is worth USD 11.24 billion and saw Alibaba Group Holding agree to issue stock equating to a 2.4 per cent stake via a secondary listing earlier this month.

The most valuable by an Irish company involved speciality pharmaceuticals developer Horizon Pharma securing USD 345.00 million back in March.

Greencoat is active in the acquisition and management of operating wind farms in Ireland and is managed by Greencoat Capital.

The firm’s Irish operating portfolio comprises 384 MW.

Net revenue for the six months to 30th June 2019 stood at EUR 47.62 million, while net cash generation for the period was EUR 23.41 million.

© Zephus Ltd